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Contrasting Sales Tax Treatment of SaaS and Software in Utah and Nevada

  • Utah imposes sales and use tax on Software as a Service (SaaS) and cloud computing services, while Nevada exempts SaaS from sales and use tax.
  • Utah imposes sales and use tax on prewritten computer software sold electronically, while Nevada does not tax the sale of prewritten software delivered electronically.
  • Utah considers digital products to be taxable, except for digital newspapers, while Nevada does not tax the sale of “specified digital products”.
  • Utah does not have a sales tax holiday, while Nevada offers a sales tax exemption for National Guard Members on October 27-29.
  • Nevada does not impose a corporate income tax but has a “Commerce Tax” on businesses with Nevada gross income exceeding $4M.
  • Major industries in Utah include mining, cattle ranching, salt production, government services, and tourism.
  • Major industries in Nevada include tourism, mining, cattle ranching, machinery, printing and publishing, food processing, and electric equipment.
  • Utah is known for its Great Salt Lake, being the second-driest state in the US, and having numerous national parks and monuments.
  • Nevada is known for its ties to entertainment and gambling, being the largest gold producing state, and having the loneliest road in America.
  • Utah has fun facts such as having the saltiest lake, being named after the Ute Native American tribe, and having the highest consumption of Jell-O.
  • Nevada has fun facts such as its name meaning snow-capped, being a major gold producer, and having the invention of hard hats for the Hoover Dam construction workers.

Source: taxconnections.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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